PE companies in talks to invest in VodaIdea

TPG Capital, Apollo Global and Carlyle Group are among private equity giants in early discussions with Vodafone Idea Ltd to put resources into the organization’s optic fiber and data centre assets worth around $1 billion, said two individuals familiar with the matter.

Since Vodafone Idea will keep on using the optic fiber infrastructure, the deals will likely happen on a sale and-leaseback basis, individuals said on the condition of anonymity.

“The fiber assets, fixed broadband and data centre businesses have a huge growth potential since telecom and internet penetration is quickly expanding. Valuing will be the key for the PE deals. Inside 2-3 months, the deals should be closed,” one of the two individuals said.

Vodafone Idea, which is burdened by liabilities of ₹1.8 lakh crore, including promptly payable adjusted gross income (AGR) contribution, has so far failed to secure investments either as direct equity or hybrid debt.